Center, APSEZ inaction hurting us: Alstom tells Gujarat HC

Seeks relief from stay imposed by the court in May last year

Alstom Bharat Forge Power Limited (ABFPL), a joint venture between French energy major Alstom and Bharat Forge Ltd, on Wednesday blamed Union government and Adani Group-owned Adani Port and Special Economic Zone (APZEZ) Ltd, of inaction, which has stalled its Rs  2,400 crore power equipment manufacturing project in Mundra Kutch.

The company, which is setting up a large integrated manufacturing facility for turbine, generators and auxiliaries spread over 120 acres in APSEZ with an annual capacity of 5,000 Mw, had to stop all its operations following a stay by Gujarat High Court in May 2012 on any kind of construction and development activities within the SEZ. The court had directed all the units within the APSEZ to stop construction and other activities till environment clearance was obtained by APSEZ from the Union ministry of environment and forest (MOEF).

ABFPL had earlier this year filed an appeal seeking relief from the stay on the ground that it was mere a lesse and had not done broken any law.

Today, during hearing of ABFPL's petition before Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala, company's counsel Gopal Subramanium claimed that his client was caught between Union government and the APSEZ authorities.

He argued that while Union government was indecisive on environmental clearance (EC) to the Adani Group company, APSEZ authorities were shunning from responsibilities of creating necessary economic and social infrastructure as mandated under the SEZ Act.

Subramanium argued that on one hand MOEF claimed that environmental and costal regulatory zone clearance to APSEZ was under consideration, APSEZ claimed that it had deemd clearance under the Environment Impact Assessment Notification, 2006. For this he placed before the court letters ABFPL wrote to APSEZ and the Union government, after the May 2012 stay order of the court, seeking to know the fact in the case.

"Alstom is shuttling between pillar and post. Center is indecisive on EC to APSEZ. If given clearance, APSEZ should be held hand and foot and made to comply with terms and conditions of fulfilling its obligation by creating economic and social infrastructure for the people in the SEZ, whose land and property it would be acquiring," Subramanium said.

He went on to argue that it was Central government's duty to fasten the hand of the APSEZ which had leased the land to ABFPL, and say that it would get EC but first it should comply to the terms and conditions of SEZ. "Lessor (APSEZ) should be brought to book. Center's indecisiveness is favouring the APSEZ," he added.

Further hearing on the case would continue next week.